WORLD> Middle East
Report: Iraq contracts have cost at least $85B
(Agencies)
Updated: 2008-08-13 15:39

They've faced kidnappings and at least 1,200 have died - including four Blackwater employees who were ambushed in 2004 by insurgents in Fallujah who strung their remains from a bridge. Some female employees of contractors have alleged they were raped by co-workers in Iraq. Investigators have said a contractor was electrocuted when the air conditioner in his living room shorted, and the death is among the electrocutions under investigation.

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Since the 2003 invasion of Iraq, much criticism has been directed at Halliburton, an oil services company once run by Vice President Dick Cheney.

Last year, KBR - formerly known as Kellogg, Brown & Root - separated from Halliburton and is now the Army's largest contractor, according to its Web site. It holds a multibillion-dollar contract to provide basic services including food and shelter for US soldiers.

It agreed in 2006 to pay $8 million to settle six-year-old claims that it overcharged the Army for construction and other support services in the Balkans.

A KBR spokeswoman declined to comment on Tuesday.

In May, an internal audit from the Defense Department's inspector general of about $8 billion paid to US and Iraqi contractors found that nearly every transaction failed to comply with federal laws or regulations aimed at preventing fraud.

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